Symptom

The actual cost calculated by percentage of completion (POC) is unexpected.

Reproducing the Issue

Go to Cost and Revenue work center and to Sales Document Items view.

Select any sales order.

Click the button Edit Percentage of Completion.

You can check the actual costs here.

Cause

In general, the percentage of completion, no matter system calculated or manual POC, plays only a role in case an accrual method is assigned. Without accrual method, costs and revenues are directly posted to profit and loss accounts.

In case a POC accrual method is assigned, the system calculates the POC based on the actual costs which is calculated through confirmed cost divide by planned cost.Note: you can get the confirmed costfrom the expense report, while the planned cost is the cost that you entered in the sales orderitem as the price component cost estimate.

If there's no planned cost maintained, system will calculate POC as 100%.Generally, the POC value is used from revenue recognition to calculate the revenues to be realized. Means that in case of a manual POC of 10%, 10% of the planned revenues are realized by the revenue recognition. All costs incurred until this period, will be recognized too.

See Also

For detailed information, please check the system documentation in the help center (search for Revenue Recognition for Project Sales)